You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2022. The bonds have a par value of $2,000 and semiannual coupons. Company (Ticker) Xenon, Incorporated (XIC) Kenny Corporation (KCC) Williams Company (WICO) Coupon 6.400 a. Price b. Current yield 7.220 ?? % Maturity January 15, 2044 January 15, 2038 January 15, 2040 Last Price Last Yield 94.303 ?? 94.835 ?? 6.22 7.04 Estimated $ Volume (000s) 57,372 a. What price would you expect to pay for the Kenny Corporation bond? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the bond's current yield? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. 48,951 43,812
You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2022. The bonds have a par value of $2,000 and semiannual coupons. Company (Ticker) Xenon, Incorporated (XIC) Kenny Corporation (KCC) Williams Company (WICO) Coupon 6.400 a. Price b. Current yield 7.220 ?? % Maturity January 15, 2044 January 15, 2038 January 15, 2040 Last Price Last Yield 94.303 ?? 94.835 ?? 6.22 7.04 Estimated $ Volume (000s) 57,372 a. What price would you expect to pay for the Kenny Corporation bond? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the bond's current yield? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. 48,951 43,812
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Problem 6-32 Bond Prices [LO 2]
You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is
currently January 15, 2022. The bonds have a par value of $2,000 and semiannual coupons.
Company (Ticker)
Xenon, Incorporated (XIC)
Kenny Corporation (KCC)
Williams Company (WICO)
Coupon
6.400
7.220
??
a. Price
b. Current yield
Maturity
January 15, 2044
January 15, 2038
January 15, 2040
%
Last Price Last Yield
94.303
??
??
6.22
94.835
7.04
Estimated $
Volume
a. What price would you expect to pay for the Kenny Corporation bond?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
b. What is the bond's current yield?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal
places, e.g., 32.16.
(000s)
57,372
48,951
43,812](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F03fe552c-4b52-4922-ab40-495940abd172%2Fd5d966de-1560-41a8-be3d-bfda51b752c2%2Fjcogrnw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 6-32 Bond Prices [LO 2]
You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is
currently January 15, 2022. The bonds have a par value of $2,000 and semiannual coupons.
Company (Ticker)
Xenon, Incorporated (XIC)
Kenny Corporation (KCC)
Williams Company (WICO)
Coupon
6.400
7.220
??
a. Price
b. Current yield
Maturity
January 15, 2044
January 15, 2038
January 15, 2040
%
Last Price Last Yield
94.303
??
??
6.22
94.835
7.04
Estimated $
Volume
a. What price would you expect to pay for the Kenny Corporation bond?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
b. What is the bond's current yield?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal
places, e.g., 32.16.
(000s)
57,372
48,951
43,812
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